High Absenteeism at Tesla's (TSLA) Sole European Factory Draws Musk's Attention

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Tesla (TSLA, Financial) has faced high absenteeism rates at its only European factory, catching the attention of CEO Elon Musk. Musk stated on X (formerly known as Twitter) that he is investigating the issue after a social media user shared a report from Germany's Handelsblatt.

The report revealed that the absenteeism rate at the Tesla factory in GrĂĽnheide, Brandenburg surged to 17% in August, over three times the average rate in Germany's automotive industry last year. In recent months, Tesla has paused production multiple times due to protests against the plant's expansion and supply chain disruptions. Moreover, the company is grappling with a slowdown in demand, with registrations in Europe dropping 16% in the first eight months of this year.

According to a recording from an internal meeting last week, factory management has conducted home visits to employees on sick leave. However, some employees refused the visits and even threatened to call the police. Dirk Schulze, the regional head of Germany's largest industrial union IG Metall, criticized the home visits as another "ridiculous measure" targeting the plant’s persistently high sick leave rates. Schulze mentioned in an email statement that employees report "extremely high workloads," with management pressuring both sick and healthy workers to overwork.

The Tesla factory employs approximately 12,000 staff and produces the Model Y, Europe's best-selling passenger car last year.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.